A small correction: part (1) of the problem asks to show that $\overline{H}$ is a subgroup of $G$.
Lemma: If $N$ is an (embedded) submanifold of $M$, then $N$ is locally closed. That is, every $x\in N$ has a neighborhood $V\subset M$ such that $N$ is closed in $V$ (i.e., $N\cap V=\overline{N}\cap V$).
By Lemma, every $h\in H$ has a neighborhood $V\subset G$ so that $H\cap V=\overline{H}\cap V$. By part (1), the diffeomorphism given by right multiplication by $x$ sends this set to $Hx\cap Vx=\overline{H}\cap Vx$, which is contained in $Hx$ and is open in $\overline{H}$; this shows that $Hx$ is open.
As for the Lemma, I learn the following proof from a problem set solution by Paul Apisa:
Proof of Lemma:
Fix $x\in N$, and let $f:U\to\mathbb{R}^m$ be a chart of $x$ in $M$. Then $f|N:U\cap N\to\mathbb{R}^n$ is a chart of $x$ in $N$; set $h=f\circ(f|N)^{-1}$. Let $B$ be an open ball in $\mathbb{R}^n$ centered at $f(x)$, then $h(B)$ is open in $f(N)$, so there exists $U\subset M$ open so that $U\cap f(N)=h(B)$. Now $\overline{B}$ is compact, so $h(\overline{B})$ is compact and hence closed ($M$ is Hausdorff). Then
$$ h(B) \subseteq U \cap h(\overline{B}) \subseteq U \cap f(N) = h(B), $$
so indeed $U\cap h(\overline{B})=h(B)=U\cap f(N)$. Therefore, $f^{-1}(U)\subset M$ is a neighborhood of $x$ such that $f^{-1}(U)\cap N=f^{-1}(U)\cap f^{-1}(h(\overline{B}))$ is closed in $f^{-1}(U)$, as desired.